News Release: PenderFund Reopens The Pender Small Cap Opportunities Fund

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Vancouver, B.C. January 11, 2019 – PenderFund Capital Management Ltd. (“Pender”) announces that it is opening two classes of the Pender Small Cap Opportunities Fund (“the Fund”).

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The Fund was capped in early 2015 when it had reached capacity. The decision to cap the Fund was taken in keeping with the best interests of unitholders. By limiting the amount of capital in the Fund, it could better maintain its focus on investing in opportunities as defined by its mandate.

Pender believes that market circumstances now make it possible for the Fund to deploy additional capital. Class B and Class G units will be sold through Prospectus and will be available to all investors through Fundserv, effective January 11, 2019. These classes will remain open for a limited time until $50 million of additional capacity has been achieved.

“We originally capped the small cap fund to maintain the existing opportunity set,” said David Barr CFA, Portfolio Manager of the Fund. “However we are seeing a lot of opportunities in small and micro cap Canada, and we have been deploying capital which has taken our cash balance down. In addition, the recent downturn in the US small and microcap tech market has expanded our opportunity set in the US, increasing our ability to deploy capital prudently. Given current markets, this is a good time to be deploying capital as we can continue to take advantage of the many wonderful ideas we are finding.”

The award-winning Pender Small Cap Opportunities Fund is an opportunistic, concentrated portfolio. The Fund is focused on undervalued small and microcap companies predominantly in Canada. The Fund is managed by David Barr CFA, who is focused on businesses with strong underlying economics and often seeks out special situations. He has a track record of identifying catalysts, where market-leading companies have been acquired. After deep fundamental analysis these businesses are purchased at a discount to our estimate of intrinsic value.